USD/JPY changes course as Nikkei trims gains, back to test 104?

A sudden bout of risk-aversion appear to grip the Asian markets, and therefore, refuels the safe-haven demand for the yen, sending USD/JPY back in the red below 104.50 levels.

USD/JPY eyes 104.00

The recovery in the USD/JPY lost pace completely below a breach of 104.50 support, knocking-off the rate to fresh session lows of 104.14, before recovering some ground to trade around 104.20, down -0.05%.   

The major failed to sustain the ongoing reversal from twenty-two months low and ran through fresh offers as risk sentiment came under pressure after the Asian equities stalled rebound and trimmed gains, with the Japanese benchmark Nikkei 225 now up +1.20% versus +1.63% earlier.

Looking ahead, in absence of relevant fundamental triggers until the NA session, the major will closely follow brooder market sentiment. While the US calendar offers a set of US housing data for fresh incentives.

USD/JPY Technical levels to watch

In terms of technicals , the immediate resistance is located at 104.82 (daily high). A break above the last, the major could test 105 (round number). While to the downside, the immediate support is seen at 104 (round number) and below that at 103.56 (Multi-months low).